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Home loans at 2.99% fixed for 1 year

(Reverting to the variable rate at maturity...currently 5.64%)

Too good to be true?

Well actually it isn't!

 This is a promotional rate from a Mortgage Manager looking to address the sharp decline in market share to non bank lenders.

A recent industry publication advised that since the second quarter of 2007, banks increased market share from 79.7% to 92.5% for new loan applications.

The dramatic reduction in lending competition has been especially pronounced in the past year, with non-bank lenders seeing market share reduce from 15.5% in the second quarter of 2008 to just 7.5% in the first quarter of 2009.

What does this mean to you, the consumer?

Basically, this is inundating the major Banks with work that they are struggling to handle. In many instances this is resulting in:-

•·         Higher interest rates

•·         Lack of personalised customer focus

•·         Poorer service and turnaround times

•·         Increased fees and charges

•·         Longer wait times for telephone banking and customer service responses

These huge promotional rate reductions won't last as the imbalance in market share evens out. If you're not happy with the service you are receiving from your Bank, or would like to compare your current home loan against that of a wide range of other lenders, then call us on 1300 788 434.

Kind Regards

The team at LFPG

"You could take years off your mortgage, and save thousands of dollars in interest by taking advantage of the exceptional rates currently on offer. Call our team of finance professionals today to find out how we can help you"

Shane Webcke -Partner